The acquisition of immovable property under Chapter XX-A of the Income-tax Act, 1961, must be based on a proper consideration of all relevant factors, including encumbrances on the property, and the presumptions raised against the transferor under Section 269C of the Act are not applicable where there is no evidence to suggest that the consideration for the transfer was not truly stated or that the transfer was made with the object of facilitating the reduction or evasion of tax liability.

D.P.Wadhwa, J.

1. This and connected appeals are directed against the order dated September 26, 1980, of the Appellate Tribunal passed under Sec. 269G of the Income-tax Act, 1961 (for short, "the Act"), setting aside the order, passed by the competent authority under Sec. 269F of the Act by which order the competent authority directed acquisition of property consisting of 17.85 kathas of land and building bearing house No. 567/409 (new)/316 (old), Circle No. 6, Ward No. 2 at Exhibition Road, Patna, which was transferred to the appellants in all these appeals in small plots by Vijay Kumar and others. The order of the competent authority is dated November 11, 1974, and passed after obtaining the approval of the Commissioner of Income-tax, Bihar I, Patna, as required under Sub-sec. (6) of Sec. 269F of the Act.

2. Earlier when the order of acquisition had been passed by the competent authority, the transferee filed appeals before the Appellate Tribunal under Sec. 269G of the Act which were all dismissed and against that the transferees filed appeals in this court under Sec. 269H of the Act which were allowed by judgment dated September 25, 1978, by a Bench of this court and is in Smt. Lalita Todi V/s. CIT [1980] 123 ITR 40. By this judgment, the decision of the Appellate Tribunal was set aside and the matter remanded back to the Appellate Tribunal to pass fresh orders in accordance with law keeping in view the observations made in the judgment. After the remand, the Appellate Tribunal passed the impugned order dated September 26, 1980, setting aside the acquisition proceeding. This time the competent authority is aggrieved and has filed these appeals in this court under Sec. 269H of the Act. This section authorises the Commissioner of Income-tax or any person aggrieved by an order of the Appellate Tribunal under Sec. 269G to prefer an appeal to the High Court on any question of law. It appears to us that these appeals filed by the competent authority are incompetent. The appeal could be filed only by the Commissioner or any person aggrieved. It cannot be said that the competent authority is an aggrieved person. The person aggrieved here will be the transferor or the transferee or any other person claiming interest in the property. Since we have heard arguments on the merits of the case as well we will not pass any final order on the maintainability of the appeal.

3. These acquisition proceedings have arisen under Chapter XX-A of the Act which Chapter was inserted in the Act by the Taxation Laws (Amendment) Act, 1972, with effect from November 15, 1972. This Chapter has now ceased to operate in respect of transfer of immovable property made after September 30, 1986, when simultaneously a new Chapter XX-C was inserted. At this stage, we may refer to Circular No. 455 (see [1986] 159 ITR (St.) 105), dated May 16, 1986, issued by the Central Board of Direct Taxes which is as under :

" Circular No. 455 dated 16th May, 1986. Subject : Acquisition of immovable properties under Chapter XX-A of Income-tax Act, 1961--Guidelines--Regarding. The Finance Bill, 1986, has proposed that no proceedings shall be initiated under Sec. 269C of the Income-tax Act, 1961, in respect of a property transferred after the 30th day of September, 1986. The Bill also proposes to insert Chapter XX-C providing for purchase by Central Government of immovable properties in certain cases of transfer. With a view to achieve early finalisation of proceedings under the existing Chapter XX-A of the Income-tax Act, 1961, the Board has decided that with effect from 1st April, 1986, acquisition proceedings under Sec. 269C will not be initiated in respect of an immovable property for which the apparent consideration is Rs. 5 lakhs or less and that where acquisition proceedings have been initiated by issue of notice under Sec. 269D, the proceedings will be dropped if the apparent consideration of the immovable property is below Rs. 5 lakhs. Yours faithfully, (Sd.) (A.